| Consolidated Financial Statements Details |
3. Consolidated Financial Statement Details
Investment in Equity Securities
As of December 31, 2025 and 2024, investment in equity securities was $0.4 million and $3.5 million, respectively. For the years ended December 31, 2025 and 2024, the Company recognized an unrealized gain of $0.1 million, due to the change in fair value of its investment in equity securities in the other income, net line item of the consolidated statements of operations. The Company sold certain equity securities in the year ended December 31, 2025 for $7.0 million, resulting in a realized gain of $3.7 million.
Intangible Assets, Net
The following table summarizes the cost, accumulated amortization, and net carrying value of the Company’s intangible assets as of December 31, 2025 (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
Net Carrying |
|
|
Cost |
|
Amortization |
|
Value |
As of December 31, 2025 |
|
|
|
|
|
|
|
|
|
Pulmokine - Seralutinib IP (Note 6) |
|
$ |
26,115 |
|
$ |
2,383 |
|
$ |
23,732 |
BioInvent - Contract-based Intangible Asset (Note 5) |
|
|
20,725 |
|
|
780 |
|
|
19,945 |
LAVA - Partnered Program IPs (Note 6) |
|
|
934 |
|
|
3 |
|
|
931 |
LAVA-1266 IP (Note 6) |
|
|
149 |
|
|
1 |
|
|
148 |
Total intangible assets |
|
$ |
47,923 |
|
$ |
3,167 |
|
$ |
44,756 |
The following table summarizes the cost, accumulated amortization and net carrying value of the Company’s intangible assets as of December 31, 2024 (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
Net Carrying |
|
|
Cost |
|
Amortization |
|
Value |
As of December 31, 2024 |
|
|
|
|
|
|
|
|
|
Pulmokine - Seralutinib IP (Note 6) |
|
$ |
26,115 |
|
$ |
206 |
|
$ |
25,909 |
Total intangible assets |
|
$ |
26,115 |
|
$ |
206 |
|
$ |
25,909 |
The estimated remaining life of the intangible assets ranges from 10.9 years to 19.9 years. The following table presents the projected future amortization expense for the next five years (in thousands):
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|
|
|
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Intangible Asset |
|
|
Amortization |
2026 |
|
$ |
3,567 |
2027 |
|
|
3,567 |
2028 |
|
|
3,567 |
2029 |
|
|
3,567 |
2030 |
|
|
3,567 |
Thereafter |
|
|
26,921 |
Total |
|
$ |
44,756 |
Accrued and Other Current Liabilities
Accrued and other current liabilities consisted of the following (in thousands):
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|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2025 |
|
2024 |
Share-based liability |
|
$ |
3,197 |
|
$ |
— |
Accrued short-term interest payable |
|
|
2,777 |
|
|
3,039 |
Accrued legal and accounting fees |
|
|
1,765 |
|
|
251 |
Accrued incentive compensation |
|
|
1,645 |
|
|
1,555 |
Accrued payroll and benefits |
|
|
394 |
|
|
170 |
Accrued clinical liabilities |
|
|
— |
|
|
306 |
Income taxes payable in connection with Pulmokine acquisition |
|
|
— |
|
|
280 |
Other accrued liabilities |
|
|
107 |
|
|
151 |
Total |
|
$ |
9,885 |
|
$ |
5,752 |
Other Income, Net
Other income, net for the years ended December 31, 2025 and 2024 was as follows (in thousands):
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|
|
|
|
|
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Year Ended |
|
|
December 31, |
|
|
2025 |
|
2024 |
Other income, net |
|
|
|
|
|
|
Gain on sale of equity securities |
|
$ |
3,663 |
|
$ |
— |
Investment income |
|
|
3,470 |
|
|
6,493 |
Arranger fee from ESSA transaction |
|
|
3,000 |
|
|
— |
Sublease income |
|
|
840 |
|
|
272 |
Unrealized gain from change in fair value of equity securities |
|
|
90 |
|
|
131 |
Other miscellaneous income, net |
|
|
1,175 |
|
|
25 |
Total other income, net |
|
$ |
12,238 |
|
$ |
6,921 |
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